Award winning Somerfield could be forced to sell 14 stores it bought from rival chain Morrisons.
The Bristol-based retailer could be forced to make the sale by the Competition Commission.
Somerfield, which took the title of fresh produce retailer of the year at Re:fresh 2005, bought 115 ex-Safeway stores from Morrisons for £260 million, but competition authorities have now said the deal has reduced competition in 14 towns.
The retailer now has until August 16 to respond to the commission’s comments.
Christopher Clarke, chairman of the commission’s inquiry, told the BBC website: “We identified stores in 14 areas where we have provisionally found that the acquisition is expected significantly to reduce competition - resulting in higher prices, or reductions in quality, range or service.
“We believe the only effective means of restoring competition in these areas is for the identified stores to be sold to a suitable grocery retailer who will offer choice and actively compete in the relevant local markets.”
A Somerfield spokesman said: “Somerfield notes the provisional findings of the Competition Commission and will be making further representations both in writing and at the remedies hearing in early August.”
The transfer of the stores was completed this spring and they are being included in a three-year refurbishment programme.
